Liquidity output interpretation
Cash is one part of available liquidity
Cash measures money already held. Available Liquidity in this financing model adds eligible undrawn funding to cash. Liquidity Headroom then subtracts Minimum Cash. Required Funding is the residual cash shortfall after the financing actually modeled—not another loan that the engine invents.
| Measure | Before cash use | After cash use of 35 |
|---|---|---|
| Commitment | 100 | 100 |
| Drawn debt | 80 | 100 |
| Still drawable | 20 | 0 |
| Cash | 20 | 5 |
| Available Liquidity | 40 | 5 |
| Minimum Cash | 15 | 15 |
| Liquidity Headroom | 25 | -10 |
| Required Funding | 0 | 10 |
On this page
Start with resources that are available on the same date
All monetary amounts below are EURk: 1 EURk = EUR 1,000. Native model files store base-currency EUR; choose EUR and the thousands display unit to reproduce these tables. All businesses, balances and financing terms are synthetic.
Opening cash is 20. The committed revolver has a limit of 100, of which 80 is drawn. Its remaining 20 is eligible for drawing during the modeled period. Available Liquidity is therefore 20 + 20 = 40. With Minimum Cash of 15, Liquidity Headroom is 40 − 15 = 25. Cash Headroom alone is only 20 − 15 = 5.
The comparison uses the opening-resource model and the model with cash use of 35. Rates and other cash movements are zero. The cash use is entered as annual investment; the table compares 2026 closing balances after the engine’s within-year funding.
Trace a 35 cash use without counting the commitment twice
Before funding, 20 cash less a use of 35 gives −15. Automatic funding draws the eligible remaining 20. Closing cash is 5, debt is 100 and undrawn availability is zero. The cash target is still 15, leaving Required Funding of 10.
Do not add the original 100 commitment to cash: 80 was already drawn. Do not add Required Funding to available resources: it describes what is missing. A positive minimum-cash shortfall can exist even when the bank balance is above zero.
Read each measure in its proper role
| Measure | What it answers | What it does not establish |
|---|---|---|
| Cash | How much cash is modeled at the date? | Whether all of it is legally or operationally accessible |
| Eligible availability | What can the configured facilities still provide? | An unconditional lender promise under every real contract |
| Liquidity Headroom | Resources above or below the chosen minimum | An independent lender approval or risk rating |
| Required Funding | What remains after modeled draws? | A new facility or an automatically funded balance |
Ratios, capacity and funding are different questions
A current ratio compares balance-sheet categories. It does not turn inventory into cash on a payment date or make a facility drawable. Likewise, analytical debt capacity is not the undrawn balance of a signed commitment. The ACT’s liquidity framework treats cash forecasting and funding resources as related parts of the review.
Eligibility depends on the modeled status, dates and remaining capacity. Actual contractual conditions still require separate review. With automatic funding disabled, Required Funding may remain while configured availability is unused; check the setting before interpreting that combination.
Use a dated weekly cash plan to locate the pressure, and the liquidity measures reference for exact definitions. Automatic funding explains the draw behavior.
Sources and conventions
Synthetic examples. Model-based results were reconciled with the current BalanceCheat calculations; assumptions, units and boundaries are specified in each example.